DoD Awards $121M Alternate Care Facility Contract to AECOM Technical Services

Contract Overview

Contract Amount: $121,409,270 ($121.4M)

Contractor: AECOM Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-03-28

End Date: 2020-04-27

Contract Duration: 30 days

Daily Burn Rate: $4.0M/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ALTERNATE CARE FACILITY (ACF): SUNY OLD WESTBURY - OLD WESTBURY, NY

Place of Performance

Location: OLD WESTBURY, NASSAU County, NEW YORK, 11568

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $121.4 million to AECOM TECHNICAL SERVICES, INC. for work described as: ALTERNATE CARE FACILITY (ACF): SUNY OLD WESTBURY - OLD WESTBURY, NY Key points: 1. Significant contract value of $121.4 million for an Alternate Care Facility. 2. AECOM Technical Services, Inc. secured the sole award, raising questions about competition. 3. The contract was not competed, potentially impacting price discovery and taxpayer value. 4. The sector is Commercial and Institutional Building Construction, with a short 30-day duration.

Value Assessment

Rating: questionable

The contract value of $121.4 million for a 30-day facility build-out appears high. Benchmarking against similar rapid-deployment construction projects is difficult without more detail, but the lack of competition suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may have resulted in a higher price than if multiple vendors had bid.

Taxpayer Impact: The lack of competition and potential for overpricing raises concerns about the efficient use of taxpayer funds for this critical facility.

Public Impact

Public health infrastructure expansion during a crisis. Significant federal investment in temporary healthcare solutions. Potential for rapid deployment of medical capacity. Contract awarded to a single entity without competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, specifically for a temporary healthcare facility. The $121.4 million award for a 30-day build-out is substantial and likely reflects emergency conditions and specialized requirements.

Small Business Impact

The contract was not awarded to small businesses, as indicated by 'sb': false. This represents a missed opportunity for small business participation in a significant federal contract.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential waste. Further review of the justification for not competing the contract is recommended.

Related Government Programs

Risk Flags

Tags

commercial-and-institutional-building-co, department-of-defense, ny, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $121.4 million to AECOM TECHNICAL SERVICES, INC.. ALTERNATE CARE FACILITY (ACF): SUNY OLD WESTBURY - OLD WESTBURY, NY

Who is the contractor on this award?

The obligated recipient is AECOM TECHNICAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $121.4 million.

What is the period of performance?

Start: 2020-03-28. End: 2020-04-27.

What was the specific justification for awarding this contract on a sole-source basis, especially given the substantial value?

The justification for a sole-source award typically involves urgent and compelling circumstances where competition is not feasible. In the context of a pandemic, the need for rapid deployment of alternate care facilities might have necessitated bypassing the standard competitive bidding process to meet immediate public health demands.

How does the cost per bed or per square foot compare to similar emergency facility constructions, and what factors drove the high price?

Without specific details on the facility's capacity (beds) or size (square footage), a direct cost comparison is challenging. However, the high total value for a short duration suggests significant costs related to rapid mobilization, specialized equipment, and potentially premium pricing due to the emergency nature of the requirement.

What measures were in place to ensure accountability and effective execution of the contract given the compressed timeline and lack of competition?

Accountability in sole-source contracts often relies on robust oversight mechanisms, including detailed performance metrics, regular progress reports, and independent quality assurance checks. The government likely implemented stringent monitoring to ensure AECOM met the project's objectives within the tight deadline and budget.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912DS20R0009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM

Address: 300 S GRAND AVE STE 1100, LOS ANGELES, CA, 90071

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $121,409,270

Exercised Options: $121,409,270

Current Obligation: $121,409,270

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $199,524,767

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2020-03-28

Current End Date: 2020-04-27

Potential End Date: 2020-04-27 00:00:00

Last Modified: 2023-07-02

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